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RF president signs package of bills on pension reform

The year 2014 will be a transitional one from the viewpoint of changes in pension legislation

MOSCOW, December 30, 4:49 /ITAR-TASS/. Russia's President Vladimir Putin has signed a package of bills on pension reform, specifically those on a funded pension and on the establishment of a two-tier system of a guaranteed accumulation of pension assets for the citizens.

Rossiiskaya Gazeta on Monday published the documents among other 62 legislative acts.

The year 2014 will be a transitional one from the viewpoint of changes in pension legislation. The new formula for the non-contributory pension will take effect on January 1, 2015, and from that date onwards the formation of the funded component will be continued -- but already in new conditions. For the time being, in the process of accumulation of pension assets in the coming year, private pension funds (PPF) must be inspected by the Central Bank (CB) and get corporatized.

There are several key changes concerning the formation of funded pensions, the investment of the accumulated assets, their preservation and a procedure for payments, Rossiiskaya Gazeta points out.

"If, first, the PPF in the course of 2014 undergoes the CB inspection procedure and is included by it in the register of guarantees of the preservation of accumulations of pension assets, if -- the second condition -- it changes its form from the private and non-commercial one to a joint-stock one, the employers will begin to remit deductions to the PPF it for all citizens insured at this particular PPF," a Labour Ministry official explained.

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